How To Start a Taxi App Business in Africa?

Driven by an increase in tourism activities, digitalization and increasing consumer preferences for affordable and reliable rides, the taxi app market is on the brink of a remarkable transformation. With the on-demand transportation industry expected to grow at a Compound Annual Growth Rate (CAGR) of 20.1% from 2025-2030 worldwide, the industry promises several opportunities to capitalize on the increasing trend. 

The African transportation landscape is evolving at a rapid pace as smartphones and internet connectivity penetrate deeper into the region. Thus, the demand for efficient and reliable ride solutions is skyrocketing. Since the market is yet in the growing phase, businesses must recognize the untapped potential of the African taxi market. 

In this blog, we will now cover the essentials of launching a successful taxi app business in Africa, providing a comprehensive roadmap for aspiring entrepreneurs in this thriving sector.

Understanding the African Taxi App Market

Launching a taxi app business in Africa is a tactical move, given the growing demand for reliable and affordable transportation solutions. But, before starting, a clear understanding of the market dynamics is essential for success.

Below is a detailed analysis of the African taxi market:

• The taxi app business in Africa is demonstrating strong growth and potential.
• Revenue in this market is expected to reach $3.39 billion by 2029, growing at a CAGR of 10.67% from 2025-2029.
• User penetration is anticipated to increase from 14.8% in 2025 to 18.5% by 2029, underscoring a growing consumer base.  
• The average revenue per user (ARPU) is projected at $11.46, contributing significantly to revenue growth.
• South Africa, coming out to be the most influenced region in Africa, is expected to reach a market volume of $443.30 million by 2029.  
• The ride-hailing market in South Africa is highly competitive, dominated by local and international players such as Bolt, Uber and Zebra Cabs.  
• Approximately 30% of Africa’s population has used ride-hailing apps, with higher adoption rates in countries like South Africa (51%), Zambia (50%) and Kenya (46%).

The above insights highlight the expanding opportunities in the African taxi market. Thus, making it an attractive space for new entrants and investors.

Growth Drivers in the Taxi App Business in Africa

As discussed above, the African taxi app industry has witnessed appreciable growth in recent years and is expected to continue expanding in the coming years. 

Below are the critical factors that are driving the growth of the taxi app business in Africa:

1. Urbanization & Population Growth: The rapid urbanization across Africa is fueling the demand for efficient and reliable transportation solutions. With the number of users expected to rise to 268.20 million by 2029 in this industry, a significant portion of this growth is concentrated in urban areas. Also, due to the increasing traffic congestion because of urbanization, people often prefer affordable & reliable rides rather than driving themselves. 

2. Technological Advancements: The widespread adoption of smartphones and increased internet penetration rate are major contributors to the increasing demand in the taxi app industry. Mobile app technologies, coupled with advancements in location tracking and payment systems, have made it easier for users to access and pay for services. 

3. Tourism Growth: Africa’s tourism sector continues to grow, with international arrivals rising steadily. With stats representing the African tourism sector to grow 6.5% per year by 2033, this surge of travelers creates a robust market for ride-hailing services (especially in key tourist destinations). 

Since travelers increasingly seek convenient, safe and accessible transportation, this positions ride-hailing platforms as a preferred option over traditional taxis. 

4. Changing Consumer Preferences: The shift in consumer demand with an emphasis on convenience, affordability and safety is growing with each passing day. Moreover, the younger, tech-savvy generation is especially drawn to the convenience of app-based services, fueling demand further.  

5. Safety & Security Concerns: Safety and security are the most important for both riders and drivers. Ride-hailing apps address these concerns by integrating several features that ensure the safety of both stakeholders. These measures not only enhance trust but also differentiate ride-hailing services from traditional transportation options, solidifying their appeal.

Top Players in the Taxi App Business in Africa

While Bolt and Uber hold a large percentage of the market share, there are several other taxi apps that have influenced the African taxi app market. They include:

#Major Global Players

1. Bolt: According to research, Bolt is the most trusted and frequently used ride-hailing app in Africa. Operating in over 40 cities across multiple African countries, including South Africa, Nigeria, Kenya and Uganda. 

• Launched In: 2016
• Market Share: 21%

2. Uber: With a market penetration of over 30 countries and 60,000 registered drivers, Uber is the second most used ride-hailing app in the African region. Its intuitive interface, enhanced safety measures and affordable rides help it retain users on the app more often.

• Launched In: 2013
• Market Share: 16%

3. Yango: Being a market leader in about 7 countries, Yango is the third largest used taxi app in Africa. Committed to serving consumer demands and enhancing its technological advances, Yango demonstrates a doubling year-on-year growth.

• Launched In: 2018
• Market Share: 14%

4. inDrive: One significantly used taxi app in most African countries also includes inDrive. The app’s unique ride-bidding and safety features have contributed to its growth in the African market especially South Africa, Nigeria and Egypt.

• Launched In: 2018
• Market Share: N/A

Other Significant Players

Apart from Bolt, Uber, Yango and inDrive, there are several other taxi apps that are quite popular in African countries, including some emerging local competitors and they are:

Taxi Apps	Launched In	Headquarters
Gozem	2018	Singapore
SafeBoda	2014	Kampala, Uganda
Teliman	2018	Bamako, Mali
HerRyde	2022	Abuja
Shilu ANA	2019	Juba, South Sudan
Yookoo Ride	2013	Johannesburg, Gauteng
Gokada	2017	Lagos State, Nigeria

Opportunities for Entering the African Taxi App Market

The African taxi app market offers a wealth of opportunities for businesses looking to establish or expand operations in the region. Thus, here are some of the most promising opportunities:

1. Localized Services: Africa’s transportation landscape is marked by a significant disparity. Thus, many of these regions remain underserved. By targeting these less competitive regions, businesses can cater to unmet demand and secure an early-mover advantage.

2. Focus on Niche Segments: As consumer preferences evolve, there is an increasing scope in focusing on niche services, For instance, providing women-friendly rides, ride-pooling options, extended rental packages, shuttle services, pet-friendly rides, etc. Offering specialized options can set your business apart and build strong customer loyalty.  

3. Partner with Local Businesses: Collaborate with local partners, such as garages, advertising firms, taxi companies, etc to reduce operational costs and improve brand visibility. Moreover, partnering with hotels, resorts and tourism operators can also provide a steady stream of tourists who require safe and reliable transportation. 

4. Enhanced Safety Measures: Safety remains a top priority for commuters across the globe. Thus, by embedding robust security measures such as real-time tracking, SOS buttons, driver verification and more, you can foster trust among users.

5. Discounts & Coupons: Offering discounts for new riders, loyalty rewards and promotional campaigns during holidays or events can encourage user retention and acquisition. Innovative pricing models, such as shared rides or ride subscriptions for frequent travelers, can also make services more affordable while driving volumes.

6. Sustainable Initiatives: Sustainability is gaining recognition and Africa is no exception. Introduce environment-friendly practices such as electric or hybrid vehicle fleets to appeal to eco-conscious customers. Partnering with governments or NGOs to support green initiatives can further strengthen brand reputation.

Essential Features Required in a Taxi App

Ride-hailing apps aim to simplify the transportation process for passengers while ensuring smooth operations for drivers and admins. Thus, a well-designed ride-hailing app should offer the following fundamental features:

• User-Friendly Interface: The ride-hailing app should be intuitive for seamless navigation.

• User Authentication: Secure an easy registration for all the user types.

• Real-Time Location Tracking: Enable location-based ride requests and navigation.

• Diverse Payment Methods: Support cash, credit/debit cards and digital wallets.  

• Push Notifications: Keep users informed about bookings, offers and updates.

• In-App Support: Multiple support channels to resolve customer queries.

While these features ensure an efficient and user-friendly system, ride-hailing apps rely on three primary interfaces i.e. Passenger App, Driver App and a Web Admin Panel to meet the specific needs, at their core. Each interface plays a critical role in creating a seamless ecosystem. Key features include:

Which is the Best Development Approach to Start a Taxi App Business in Africa and Why?

When building a taxi app, choosing the right development approach is crucial, as it impacts the time, cost and scalability of your business. While custom development involves building a taxi app from scratch, offering complete control over the app’s features and design, it also comes with a few challenges, such as:

• High Initial Investment: Custom development can be cost-prohibitive for startups.
• Longer Development Times: It can take months or even years to develop a fully functional app from scratch.
• Resource Intensive: Requires a dedicated team of skilled professionals for ongoing development and maintenance.

Whereas, readymade software solutions are pre-built platforms designed to build and deploy taxi app quickly and cost-effectively. These solutions come equipped with essential features and functionalities to launch a fully functional app. Therefore, Readymade Software proves to be the better option for businesses entering the taxi market. Here’s why:

1. Cost Effective: Readymade software solutions are more budget-friendly as they leverage pre-built frameworks, making them ideal for businesses looking to capitalize as soon as possible.

2. Faster Time-to-Market: Readymade software substantially reduces development time since much of the foundational work has already been done. This allows businesses to launch quickly and start capturing market share.

3. Customization Options: Modern readymade software solutions offer a high degree of customization, allowing businesses to tailor the app’s design, features and functionalities to meet local market demands and consumer expectations in Africa.

4. Proven Reliability: Readymade taxi apps are typically tried and tested and built on proven technology, ensuring fewer bugs and better performance. This reliability is crucial for user retention, especially in emerging markets where trust is key.

5. Scalability: Many readymade solutions are built to scale, enabling businesses to expand their offerings or increase the number of users without undergoing major redevelopment. This aligns well with the growing urbanization and technological adoption in Africa.

The Most Cost-Effective Solution to Start a Taxi App Business in Africa

Till now, you may have understood that utilizing a readymade software solution to start a taxi app business in Africa is in your best interest. However, there are several readymade software solutions promising to build your taxi app quickly without investing much money. But, to decide which of them is the best, you can compare them based on the following factors:

• Leverage a software solution that has a clean and intuitive user interface.
• The software should be able to scale for future growth.
• It should be customizable to help you reflect your unique business identity.
• Check for client reviews and testimonials.
• Leverage free trials/demos to test the software.
• Look for software that does not demand any recurring costs.
• The software must provide comprehensive after-sales support.

Based on the above-mentioned factors, you can choose the software that best suits your requirements before making a commitment. One such ready-made software that ticks all the checkboxes is VivoCabs. 

VivoCabs, developed by FATbit Technologies, is a premier ready-made ride-hailing software that allows you to build and launch your ride-hailing apps in comparatively less time than custom development.

The software equips all the essential features and functionalities to create a fully functioning ride-hailing app. The software leverages over 25 payment gateways, multi-lingual & multi-currency functionality and business APIs to even support international ride-hailing operations. 

Here are a few clients based in Africa who had a great experience with VivoCabs:

• TripLI: Nigeria-based Ride-hailing App

TripLi is a premier ride-hailing app redefining transportation in Nigeria. Built with VivoCabs, this ride-hailing app leverages cutting-edge technology and advanced ride-centric features that make it a trusted ride-hailing app across the region.

• Okra Rides: Dynamic Transportation Solution for Zambia

Built with VivoCabs, Okra Rides ensures seamless and efficient travel in Zambia with a focus on user convenience and safety. The ride-hailing app provides affordable rides with exclusive offers—making it a reliable solution for people of Zambia.

Final Thoughts

Looking at the extensively gaining demand for affordable, comfortable and reliable transportation solutions, starting a taxi business in Africa offers a promising venture. However, it is essential to be careful of the intricacies such as development approach, cost-effectiveness, hosting type and market entry, before building a taxi app.

Leveraging a ready-made software like VivoCabs to start a taxi business in Africa can be profitable considering the software’s experience among its clients, plus, the expertise and experience FATbit Technologies holds in the industry.